Judicial appeal against electricity remuneration 2026-2031: what distributors must do

Key data

Electricity and natural gas transport and distribution companies face a major regulatory uncertainty: the methodology that determines their regulated revenues for the 2026-2031 period is being judicially challenged. The CNMC Resolution of 12 March 2026, published in the BOE on 23 March 2026, summons interested parties in administrative appeal 4/336/2026, filed before the Audiencia Nacional against Circular 9/2025.

Circular 9/2025, of 22 December 2025, amends Circular 2/2019, of 12 November, which establishes the methodology for calculating the financial return rate for electricity and gas transport and distribution activities, and regasification. It also sets the return rates applicable to the 2026-2031 regulatory period for electricity transport, system operation and distribution. These rates are the basis for the regulated revenues of companies in the sector over the next six years.

What does this regulation establish?

This summons is a procedural step: the CNMC publicly notifies the existence of appeal 4/336/2026 so that any company or entity with a legitimate interest may join the proceedings before the Audiencia Nacional.

The subject of the appeal is CNMC Circular 9/2025, which introduces two significant changes:

• It amends Circular 2/2019, of 12 November, which governs the methodology for calculating the financial return rate for electricity transport and distribution, natural gas transport and distribution, and regasification.
• It sets the financial return rates applicable to the 2026-2031 regulatory period for electricity transport, system operation and distribution activities.

The financial return rate is the central parameter that determines how much regulated companies are paid for their network assets. A change in this rate has a direct and quantifiable impact on the income statements of distributors and transporters.

Economic and operational impact

The financial return rate is not a minor technical figure: it is the regulatory interest rate that remunerates the network assets of distributors and transporters. Its level directly determines the revenues these companies can receive throughout the entire 2026-2031 regulatory period, that is, for six years.

A ruling in favour of the appellant before the Audiencia Nacional could have three practical consequences:

• Modification of the rates set for the 2026-2031 period, with an impact on already planned regulated revenues.
• Interim suspension of the application of the rates while the proceedings are resolved, creating uncertainty in financial planning.
• Review of the calculation methodology inherited from Circular 2/2019, which could also affect future periods.

For companies in the sector, this regulatory uncertainty has immediate operational consequences: it hampers network investment planning, conditions cash flow projections and may affect the financing conditions of infrastructure projects.

Who is affected?

• Electricity distribution companies (low and medium voltage network distributors).
• Electricity transport companies (high voltage network management).
• Electricity system operators.
• Natural gas transport and distribution companies.
• Natural gas regasification companies.
• Legal and financial advisors working with regulated companies in the energy sector.
• Investors and financing entities of energy network infrastructure in Spain.

Practical example

An electricity distribution company has planned its budget for 2026 and the following five years based on the financial return rates set by Circular 9/2025 for the 2026-2031 regulatory period. These rates are the reference for calculating the regulated revenues it will receive for managing its network.

If the Audiencia Nacional admits appeal 4/336/2026 for consideration and agrees an interim suspension measure, the company would find itself in a situation of uncertainty: it would not know with certainty which rate will apply for the duration of the judicial proceedings. This would require revising financial projections, communicating the contingency to its lenders and, possibly, postponing network infrastructure investment decisions.

Furthermore, if the company has a legitimate interest in maintaining or amending Circular 9/2025, the summons published on 23 March 2026 opens the door for it to join the proceedings and defend its position before the Audiencia Nacional. Failing to do so means losing that procedural opportunity.

What should companies do now?

1. Assess whether they have a legitimate interest in the outcome of appeal 4/336/2026: if Circular 9/2025 affects their regulated revenues, they most likely do.
2. Consult with legal advisors specialised in energy law to assess the advisability of joining the proceedings as an interested party before the Audiencia Nacional.
3. Review 2026-2031 financial projections incorporating the regulatory uncertainty scenario: what happens if the rates change or are suspended on an interim basis.
4. Communicate the contingency to governing bodies, investors and financing entities with exposure to regulated revenues for the 2026-2031 period.
5. Monitor the development of the judicial proceedings before the Audiencia Nacional to anticipate possible changes in the recognised remuneration.

Official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, please consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-6781